Growing your business, improving profits, avoiding liquidation – whatever your goal, we have the know-how to help you achieve it.

Business success is easy – if you know how

Our business success programme is not limited to one industry or a certain stage of your business. Over the years we have helped many clients from all industries improve and grow their business through strategic business planning, operational planning and implementation and ongoing performance management.

These case studies show how three businesses in very different situations greatly benefited from working with us.

If you are wondering if we could help you improve your business, get in touch! Our free initial consultation session comes with no obligations and tapping into our know-how could make a huge difference to your life.

CASE STUDY 1

ENGINEERING, PROPERTY AND HIRE GROUP

This business comprised three distinct businesses, a long established engineering business, a property ownership company and a plant hire business. Significant loans, failing to file reports and unawareness of IRD debts had the business close to receivership. Our consultant quickly concluded that the situation was serious and that the owner risked losing everything.

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IDENTIFIED CHALLENGES
  • Turnover, gross margin and net profit were all declining
  • The bank had recently declined additional lending and now required a marked reduction in the overdraft
  • The operations manager was no longer able to handle the business’ complexities
  • Manual systems did not allow business Key Performance Indicator (KPI) reporting
  • Staff productivity could not be measured and jobs were not back-costed; profits were being forfeited as a result
  • The business was over-stocked tying up cash reserves
  • Staff were making unauthorised purchases rather than ensuring they had all necessary parts with them before starting a job.

Our consultant quickly concluded that the business owners were open to change, the company’s product was valuable in the market, proven opportunities existed for expansion, and the staff were loyal and generally competent.

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PROGRAMME ACTIONS
  • A company vehicle, surplus to requirements, was sold and the cash banked
  • Prices were revised and adjusted
  • Procedures for checking staff timesheets to job cards were implemented, identifying profit loss
  • Stock ordering was changed to a ‘just in time’ system. Other slow-moving stock items were converted into domestic structures for sale to retail customers
  • A 5-year Strategic Business Plan was completed, including 5-year financial forecasts
  • A new operations manager was head-hunted and appointed when the old one retired.
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SUCCESSFUL OUTCOMES
  • Over the first five months, annualised turnover, gross margin percent and net profit all increased by 11%, 3% and 21% respectively
  • The (significant) bank overdraft was reduced, and was close to break-even at the end of five months
  • New staff processes resulted in an immediate increase in staff productivity by 3%, equating to $25,000 annually
  • Stock level reductions and redeployment improved the cash position by approximately $30,000 in the first five months
  • An estimated $184,000 annualised net profit was returned to the company in five months
  • The 5-year Strategic Business Plan is being implemented as a ‘practical document’, offering the company a genuine ‘road map’ for future positive growth.
  • This allowed the business to improve its cash position significantly, to foster better banking relationships and to attract and employ a quality operations manager tasked with further improvements. Staff morale and engagement are improving. The business owners have begun working ON their business, not just IN it and have reported a notable reduction in stress levels.
Full Story

CASE STUDY 2

CONSTRUCTION COMPANY

With turnover, gross margin and net profit declining and the bank declining additional lending, the operations manager was no longer able to handle the business’ complexities. Our consultant worked with the business and achieved to improve its cash position significantly and to attract and employ a quality operations manager tasked with further improvements. Staff morale and engagement are improving and the business owners have reported a notable reduction in stress levels.

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IDENTIFIED CHALLENGES
  • Turnover, gross margin and net profit were all declining
  • The bank had recently declined additional lending and now required a marked reduction in the overdraft
  • The operations manager was no longer able to handle the business’ complexities
  • Manual systems did not allow business Key Performance Indicator (KPI) reporting
  • Staff productivity could not be measured and jobs were not back-costed; profits were being forfeited as a result
  • The business was over-stocked tying up cash reserves
  • Staff were making unauthorised purchases rather than ensuring they had all necessary parts with them before starting a job.

Our consultant quickly concluded that the business owners were open to change, the company’s product was valuable in the market, proven opportunities existed for expansion, and the staff were loyal and generally competent.

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PROGRAMME ACTIONS
  • A company vehicle, surplus to requirements, was sold and the cash banked
  • Prices were revised and adjusted
  • Procedures for checking staff timesheets to job cards were implemented, identifying profit loss
  • Stock ordering was changed to a ‘just in time’ system. Other slow-moving stock items were converted into domestic structures for sale to retail customers
  • A 5-year Strategic Business Plan was completed, including 5-year financial forecasts
  • A new operations manager was head-hunted and appointed when the old one retired.
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SUCCESSFUL OUTCOMES
  • Over the first five months, annualised turnover, gross margin percent and net profit all increased by 11%, 3% and 21% respectively
  • The (significant) bank overdraft was reduced, and was close to break-even at the end of five months
  • New staff processes resulted in an immediate increase in staff productivity by 3%, equating to $25,000 annually
  • Stock level reductions and redeployment improved the cash position by approximately $30,000 in the first five months
  • An estimated $184,000 annualised net profit was returned to the company in five months
  • The 5-year Strategic Business Plan is being implemented as a ‘practical document’, offering the company a genuine ‘road map’ for future positive growth.
  • This allowed the business to improve its cash position significantly, to foster better banking relationships and to attract and employ a quality operations manager tasked with further improvements. Staff morale and engagement are improving. The business owners have begun working ON their business, not just IN it and have reported a notable reduction in stress levels.
Full Story

CASE STUDY 3

ENGINEERING MANUFACTURING BUSINESS

The company was an established manufacturing engineering business making and supplying equipment for the New Zealand farming industry. Although enjoying a significant turnover, the business was not making sufficient profits to support the families of the founder and his three sons all of whom worked in the business and made up the management team.

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IDENTIFIED CHALLENGES
  • Although enjoying a significant turnover, the business was not making sufficient profits to support the families of the founder and his three sons all of whom worked in the business and made up the management team;
  • In an effort to rectify this situation the owners had purchased a similar business located close by but were operating the two businesses as separate stand-alone enterprises.
  • Internal management within the Company was loose with ill-defined roles and responsibilities resulting in considerable cross over of instructions from management to different sections of the work force.
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PROGRAMME ACTIONS

The Thexton Consulting consultant modelled out the increase in business required to achieve the directors’ expectations for profits and identified key actions required to achieve those profits. The agreed actions taken were to:

  • Amalgamate the two separate businesses under the same management team and location and start to run them as a single larger business;
  • Draw up and implement a management structure that saw each member of the management team with separate responsibilities for different facets of the business, with the Managing Director having an oversight role across the entire business;
  • Re-organise the NZ wide distribution system through a network of retail level distributors;
  • Contract Prime Dealers to achieve sales targets with appropriate incentives in place;
  • Move into the Australian market in an effort to access more sales using an Australian agent;
  • Investigate importing some components for equipment from overseas;
  • Implement a production management system and a linked quality control system;
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SUCCESSFUL OUTCOMES

• Amalgamating the two businesses in one location produced significant efficiencies and cost savings;
• The revised management structure saw cross department interference reduced to a minimum resulting in significant improvements to operational efficiency;
• Re-organising the distribution system provided greater dealer commitment and a resultant increase in sales;
• Importing some componentry from overseas reduced direct costs;
• The new production management and quality control systems improved output from the factory whilst also minimising rework and improving reliability of equipment sold. They provided the Company with a significant increase in productivity for minimal additional labour cost.

The overall impact of working with Compass South was that at the end of two years, Sales had increased by 50% and the business was on track to meet the owners profit growth targets.

Full Story

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